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Elon Musk's Dogecoin Boost Caused 380% Daily Spike In Memecoin Traders, Says Report

Published 28/07/2022, 12:38
© Reuters.  Elon Musk's Dogecoin Boost Caused 380% Daily Spike In Memecoin Traders, Says Report
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Trading data analysis from Capital.com found that retail traders continued to trade Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) despite a bearish crypto market.

What Happened: In a report examining retail investor trends in Q2, Capital.com said that DOGE and SHIB remained popular among traders, even as the crypto market took a turn for the worse.

“Capital.com group data shows that since 7 May our traders have maintained their relative exposure to SHIB and DOGE,” the report stated.

The brokerage’s analysis showed that Tesla Inc (NASDAQ: TSLA) CEO Elon Musk drove a significant increase in daily trading activity on the day reports of his $43 billion Twitter Inc (NYSE: NYSE:TWTR) takeover first emerged.

“Given the nature of the memecoin sector it is unsurprising that Musk’s intervention drove a spike of +383% increase in memecoin traders on Capital.com’s group platform that day,” the report said.

The platform’s traders were also observed decreasing exposure to Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), while trade levels for DOGE and SHIB remained at similar levels in Q2 as they did in Q1.

“This shows that across all crypto trades, preference has shifted towards DOGE and SHIB,” wrote the Capital.com analysts.

Price Action: As per data from Benzinga Pro, at press time, DOGE was trading a $0.066, up 5.62% over the last 24 hours.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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